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Saturday, February 13, 2010

More On Steve Beshear's Gambling Budget Plan, As Top Lawmakers Shun Idea.

Top legislators shun Beshear's plea for gambling bill
By Tom Loftus

FRANKFORT, Ky. — There’s unlikely to be money for raises for teachers or state workers, but the General Assembly's top two leaders said Friday that they can pass a state budget without revenue from expanded gambling.

Brushing off Gov. Steve Beshear's renewed plea a day earlier to reconsider his budget plan, which included gambling revenue, House Speaker Greg Stumbo and Senate President David Williams acknowledged that the budget will be lean.

Still, Stumbo said, “the parks aren't going to close, the schools aren't going to close, the roads aren't going to go without maintenance. None of those drastic things are going to happen.”

“Teachers probably won't get a raise,” he said, “(but) I don't know anybody that's getting a raise in this economy.”

Williams agreed.

“There are very few people in the private sector that wouldn't sign up today if they could be guaranteed 98 percent, or 97 percent, or 96 percent of the income they had last year,” Williams said. “… Government employees from top to bottom, whether they're in education or anywhere else, cannot be expected to be completely insulated from the situation that we find ourselves in economically.”

The budget proposed by Beshear included no raises for teachers or state workers, but said such raises would be the top priority if Congress approved additional stimulus funds for Kentucky.

Sharron Oxendine, president of the Kentucky Education Association, and Lee Jackson, president of the Kentucky Association of State Employees, said Friday that they recognize the budget fix. But they said they hope lawmakers will be able, at a minimum, to match the promise in Beshear's budget.

“I'm trying to prevent layoffs,” Jackson said.

The state faces a shortage of about $1.5 billion in anticipated revenue over the two-year budget period that begins July 1. Beshear proposed a budget that avoided drastic cuts to programs by relying on $780 million in proceeds from his bill to legalize video gambling machines at racetracks.

Late Friday, Beshear's office released a statement that said the governor's budget is the only solution offered so far that “doesn't make drastic cuts, raise taxes or rely on more stimulus money we may never get.”

And he reiterated that lawmakers still have time to consider it.

House leaders had pronounced the Beshear budget plan dead almost immediately after he proposed it, and there was little enthusiasm after the governor sent House members a letter Thursday asking them to reconsider.

The letter responded in part to a proposal House leaders are considering to strip $227 million in General Fund money from the state's Medicaid program in hopes that the federal government will approve additional stimulus funds for Medicaid starting in 2011.

Beshear, a Democrat, said in the letter that his approach would be more favorable than relying on “a hope and a prayer” for more federal dollars.

Stumbo, D-Prestonsburg, said Friday that he had only heard about Beshear's letter and had not read it. He said his best information from Washington is that Congress will provide more funds for Medicaid.

Stumbo, a supporter of legalizing video slot machines at tracks, said the measure doesn't have the support to pass this session. He added that he's unaware of Beshear personally lobbying any House members for it.

Stumbo said he believes the budget that lawmakers prepare “will be maybe one of the better budgets that we've had because we're able to do … probably more with reducing the size of government than perhaps even the governor can.”

Williams, R-Burkesville, described Beshear's letter as an attempt to alienate the public from the legislature.

“He's made certain statements to members of the legislature if he doesn't get expanded gaming that when we leave here that he's going to continue to blame these cuts that are contained in the budget — or efficiencies in the budget — on the legislature and call us back immediately,” Williams said.

He said Beshear's proposed budget was fiscally irresponsible because it would use five years of fees from gambling licenses in the next two years and calls for new borrowing to pay for student financial aid.

As for any new revenue from taxes, Stumbo said, “We aren't even talking about that now.”

Both leaders said the budget will be, more than ever before, a product of the legislature rather than the governor.

“This is a defining moment for the General Assembly,” Stumbo said.

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